The Road Fund Administration's annual revenue has grown from N$300 million in 2000 to more than N$2,5 billion currently, RFA CEO Ali Ipinge said during the signing of agreements at Keetmanshoop yesterday.
Ipinge signed road maintenance and upgrading agreements with local and regional authorities in Hardap and //Karas at Keetmanshoop yesterday.
He said there was still a gap between the levies the fund collected from road users, and its road maintenance budget. The signing of the agreements comes in the wake of the November RFA business plan consultative meetings with regional and local councils.
Ipinge explained that the agreements would become effective on 1 April this year, and addressed funding for the maintenance of urban and rural roads, the enforcement of traffic laws as well as the implementation of road safety and road research campaigns, amongst others.
The signing of the agreements between the parties would enable the facilitation of fair and efficient allocations of funds by the RFA to the approved authorities, and to improve the effectiveness and monitoring of how the scarce funds are used.
"In this regard, the allocation of funds, through the enhancement of the funding model by the RFA will be streamlined to maximise the funding available to both its primary and secondary recipients," he added.
In the past, funds for the upgrading and rehabilitation of roads to approved authorities were allocated "subjectively", Ipinge noted.
To qualify for funding from the RFA, authorities have to prepare and submit annual road maintenance and upgrading budgets, including a project implementation programme, and it should be submitted to the fund before 30 September every year.
"The deadline is not negotiable," he stressed.
Ipinge said the agreements signed should not be regarded as punitive and constraining to road maintenance funding. They should instead be seen as streamlining operational efficiencies to serve the approved authorities better, and for the increased benefit of road users. Furthermore, allocations to local and regional authorities for the 2018/19 financial year would be increased to N$117 million, up from N$85 million in the past, which reflects an increase of 39%.